Question
For a given change in short-term financial management policies, the CCC is expected to be cut in half. For a credit sale that was
For a given change in short-term financial management policies, the CCC is expected to be cut in half. For a credit sale that was just made, the ANPV from the shorter CCC is $10,000. Assume a discount rate of 7.30%. Calculate the cumulative change in firm value from the shorter CCC assuming that a comparable sale is made each year on this date in perpetuity. Round your answer to two decimals.
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
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